FairPoint Communications 2009 Annual Report Download - page 35

Table of Contents
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After extensive negotiations with a representative appointed by the Maine PUC (the "MPUC") and with the Maine Office of the Public Advocate
(together, the "Maine Regulatory Parties"), we reached an agreement with the Maine Regulatory Parties on a settlement (the "Maine Regulatory
Settlement"). The Maine Regulatory Settlement sets forth changes to the ME 2008 Order (as defined below) issued in connection with the Merger. The
Maine Regulatory Settlement, which is subject to the approval of the MPUC, provides for, among other things, the following:
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•We will comply with the MPUC's February 1, 2008 Order issued in Docket Nos. 2007-67 and 2005-155, and all stipulations approved
thereby (the "ME 2008 Order"), except as the terms and conditions of the Merger Order are expressly modified by the Maine Regulatory
Settlement; provided, however, that with respect to reimbursement claims of third parties arising under the ME 2008 Merger Order, the
Maine Regulatory Parties will recommend that the Maine Regulatory Settlement shall not affect the status of such claims under
applicable bankruptcy law.
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•We and the MPUC agree to submit a joint consent order to the Bankruptcy Court which provides for the implementation of the service
quality index ("SQI") rebates for the 2008-2009 SQI year starting in March 2010, subject to our right to credit such rebates against
future SQI rebates that are required to be paid by us, in the event the Maine Regulatory Settlement is not approved by the MPUC and the
Bankruptcy Court subsequently enters an injunction against payment of rebates for the 2008-2009 SQI year.
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•The deadline for our initial 83% broadband buildout requirement will be extended from April 1, 2010 to December 31, 2010. An
additional interim broadband buildout requirement of 85% is established with a July 31, 2012 deadline, and the final broadband buildout
requirement with a March 31, 2013 deadline, will be reduced from 90% to 87%. However, if we fail to meet these requirements, we
shall be required to achieve 90% broadband buildout by March 31, 2014. If we meet the 87% requirement by March 31, 2013, we will
contribute $100,000 to the ConnectME Authority on July 1, 2013. We also agree that by March 31, 2013, we will achieve broadband
buildout of 82% for lines in UNE Zone 3.
•In meeting our broadband buildout requirements beyond 85%, we may resell the broadband service offerings of other non-satellite
providers in order to meet our buildout and/or service requirements, provided that the services meet or exceed all requirements of the ME
2008 Order, the resold services are purchased through and serviced by us and the MPUC Staff (as defined in the Disclosure Statement)
approves the provider(s). The MPUC Staff's approval may not be unreasonably withheld and if the MPUC Staff does not deny within
30 calendar days our request to resell the services of a particular provider, our request will be approved automatically.
•The Maine Regulatory Parties will recommend that, effective January 1, 2011, the MPUC rescind the requirement in the ME 2008 Order
that requires us to price our broadband services at uniform statewide rates, provided that during the subsequent two-year period our
prices for broadband services do not exceed 120% of the prices of equivalent services provided in our "classic" or "legacy" service
regions, which are the regions in Maine in which we provided telephone service prior to the issuance of the ME 2008 Order.
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